Rebuilding After Hurricane Harvey: How Your Nonprofit Can Help

On Friday, August 25th, the catastrophic storm, Hurricane Harvey, slammed onto the shore of southeastern Texas as a Category 4 hurricane and has since weakened to a tropical storm as of Saturday. Many of us have seen the heartbreaking effects that Hurricane Harvey has had and wonder how we can be of assistance to help those that were affected, recover from the disaster. 

Our ultimate goal and aim at ExpressTaxExempt is to be a resource to all nonprofits and support the enrichment of communities worldwide. With respect to those affected by Hurricane Harvey, we have provided a listing of philanthropic opportunities for both nonprofits and individuals to donate/give to. We encourage you to browse through the various causes listed below and help our brothers and sisters in Texas. 

Monetary Donations

Red Cross - The American Red Cross is working around the clock to help those whose lives have been devastated by Tropical Storm Harvey. Donations can be made online or by phone at 1-800-RED-CROSS. You can also text “HARVEY” to 90999 and make a $10 donation through your mobile device.

The Salvation Army - The Salvation Army provides physical, emotional and spiritual care to the survivors and relief workers of Hurricane Harvey. They currently have disaster teams from across the country working in the treacherous waters and have response efforts in place for long-term disaster recovery efforts. Visit their website to make an online donation of $25.00 or more. Donations can also be made by mail or phone.

City of Houston Relief Fund - The Mayor of Houston, Sylvester Turner has established a relief fund administered by the Greater Houston Community Foundation that will accept tax deductible flood relief donations. For more information on how to donate by credit card, check/money order, or transfer cash by wire, click here.

Save the Children - This organization focuses on the most vulnerable by providing items such as cribs and shelter to displaced children. For ways to support the Hurricane Harvey Children’s Relief Fund, visit the Save The Children website.

Volunteer Opportunities

Samaritan’s Purse - The Samaritan’s Purse currently has 2 disaster relief units in Texas helping residents through the rain, flooding, and destruction caused by Hurricane Harvey. They will soon have a total of 5 tractor trailers in the state to assist those affected. Click here to donate. Volunteers are also needed...thousands to be exact. Visit their Volunteer Network to sign up and receive updates on details and needs.

Heart to Heart - Heart to Heart International deploys a team of highly qualified responders equipped to rapidly respond as a self-contained mobile medical team. Volunteers are being recruited in the following fields: nurses, physicians/midlevel providers (Emergency Medicine, General Practitioner, Family Medicine, Pediatrics), EMT/Paramedics, Physical Therapists, Mental Health, Logistics, Administration, and Security. Find out more information here.

Share This Post

Please help us help others by sharing this post with at least 2 people to increase the support that Hurricane Harvey victims will receive. Recovery from a disaster is never easy, so the more help they receive, the better! Also, if you know of other donation opportunities, comment below and we can add them to the list! 

Other Ways to Donate:

Feeding Texas - Feeding Texas serves alongside state and federal relief efforts when disasters strike the state of Texas. If you or someone you know is in the state of Texas, they can donate food items such as pop-top meat/fish, powdered milk, cereal, canned fruit, fruit cups, peanut butter and jelly as well as cleaning supplies to a local food bank in Houston, Galveston, and other areas. Monetary donations are always welcomed also. Visit the Feeding Texas website for a list of local food banks and contact information.

United Airlines - Airplane carrier United Airlines is offering up to 1,000 bonus miles to MileagePlus members who donate to relief efforts on its fundraising page. They will also match the first $100,000 donated. If you donate $50-$99 you will earn 250 bonus miles and $100-$249 will get you 500 bonus miles. Visit United Airlines Fundraising Page to donate.

Shelter

Airbnb - Airbnb has created an Urgent Accommodations site where evacuees from the storm can find shelter and all service fees are waived for those affected by the disaster that check in between August 23, 2017 and September 25, 2017. If you need a place to stay or have a home in that area that you would like to add to their database, click here.

Animal Relief

SPCA of Texas - The SPCA of Texas is providing disaster relief to pets affected by Hurricane Harvey. A large team of their staff and volunteers have already set up a temporary animal shelter near the mega shelter in Downtown Dallas and are working in conjunction with city and county disaster officials. Click here to support their efforts.

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Can Nonprofits Still Get Taxed?

When you hear the words “nonprofit” or “tax-exempt,” you typically think of a public charity or group doing some charitable work. And any money made, either through contributions or services, is exempt from taxes. That’s how you would think nonprofits work, but recently in the state of Washington, this concept went under scrutiny.

In 2015, a small animal rescue organization located in Eatonville, Washington, was contacted by a tax information specialist from the state’s Department of Revenue. The rescue group received notification that the sale of animals isn’t exempt from taxes - meaning that any adoption fees are subject to retail sales tax and Retailing Business and Occupation (B&O) tax. Based on this information, the animal rescue realized they would have to pay nearly $20,000 in back taxes.

According to Washington’s Department of Revenue, nonprofit groups in the state get taxed like any other business; they are also responsible for B&O tax on revenues from business activities, sales tax on goods and services purchased as consumers, and they must charge a sales tax for items and services offered. In this particular situation, the only exemption is for a government or quasi-government group like humane societies providing similar services.

Other private animal shelters and advocates have spoken how animal adoptions are not sales but require fees for pet licensing; they’ve also exclaimed how exceptions for government-sponsored animal shelters are double standards. Back in Eatonville, the founder of the small animal rescue explained that revenue from adoption fees goes directly to providing veterinary and dental services for animals in their care. And the organization is maintained entirely by volunteers.

While it is quite possible for nonprofit organizations to have taxes imposed, under normal circumstances, it depends on how the revenue gets generated. If a tax-exempt group makes money from activities or services that have nothing to do with their exempt purpose, it gets taxed. Likewise, revenue spent on anything non-related to the exempt purpose gets taxed. And you also have your normal wage taxes for any paid employees or officers.

The Washington state Department of Revenue has since then vetoed their decision to impose retail taxes on adoption fees; however, this resolution has remained inconsistent throughout the state. In 2016, a bill was introduced in the Senate suggesting tax improvements and licensing laws governed by the Department of Revenue. The bill presents a formalized policy prohibiting retail sales tax from animal adoption fees charged by nonprofit animal organizations.

If you have questions or concerns about taxable revenue generated by your nonprofit or charity, please speak with a local tax professional - you may have to file additional returns along with your IRS 990 form to correctly report taxed income.

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Are Donations to Animal Rescue Shelters Tax Deductible?

Like with many other nonprofits or charities, if you make a donation, you can typically deduct the value of your contribution from your annual tax bill.

To do so, the nonprofit group you’re giving to must be officially recognized by the IRS as a section 501(c)(3) organization. You can check an organization’s tax-exempt status by searching the IRS Exempt Organization Select Check.

Are Donations to Animal Rescue Shelters Tax Deductible?

When you’re filing, you will also need to itemize the amount of your donation - this may not be worth the extra effort if you only gave a little here and there. But if you gave a significant amount throughout the year, it is best to itemize the deduction on your personal tax return.

Here are 3 things to consider when donating to an animal rescue shelter:

1. Pet Adoption vs. Donation

A common misconception most people make is thinking that payment for adopting from an animal shelter is the same as making a donation. Only donations in which the donor receives no goods or services in return can count towards a deduction.

In this case, you’re giving money in exchange for your pet - that's more of a service charge rather than a charitable contribution. However, if you paid over the cost of adoption or gave a gift outside of the adoption transaction, that counts as a valid charitable contribution.

2. Donation Value

If you’re donating items, you’ll need to estimate the fair market value for each of those items. There’s no one particular method for finding fair market values - you can look through local shops or online stores to figure out prices of similar items in the open market. For special unique gifts, such as a hand-woven, nap basket for kittens, you can get it appraised for the market value.

3. Written Proof of Donation

When you’re donating to an official 501(c)(3) organization, it’s common practice to receive a physical receipt for your donation. If your total contribution amount is at least $250, the IRS requires you to submit proper documentation along with your tax return. Like other receipts from nonprofits or charities, it should contain the description of the contribution and the amount along with the name and address of the organization.

If you received a gift or benefit from the animal shelter in return for your donation, include a description of the gift on the written receipt. Any reciprocated gifts with a monetary value should be subtracted from the amount of your contribution when reporting. A paper certificate or “Thank You” card typically don’t have cash values, but a coupon or gift card does.

Animal rescue shelters can report received contributions over $5,000 to the IRS by using a Schedule B along with their Form 990 or 990-EZ tax return. Taxpayers that want to claim an itemized deduction for their donations to an animal shelter can complete a Schedule A with their IRS 1040 form.

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